RESTATEMENT OF UNAUDITED QUARTERLY RESULTS | 16. RESTATEMENT OF UNAUDITED QUARTERLY RESULTS The adjustments in the tables below reflect the impacts of the restatement discussed in Note 2 on our unaudited quarterly financial statements for the three months ended September 30, 2021, the three and six months ended December 31, 2021, and the three and nine months ended March 31, 2022. Schedule of Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet (unaudited) As of September 30, 2021 As Previously Reported Restatement Impacts Restated ASSETS Current Cash $ 5,868 $ - $ 5,868 Prepaid expenses and other 294 - 294 Total current assets 6,162 - 6,162 Non-current Deposits 35 - 35 Investment in equity securities 14 - 14 Right-of-use assets 141 - 141 Land and buildings, net 852 - 852 Mineral properties 16,085 - 16,085 Total assets $ 23,289 $ - $ 23,289 LIABILITIES Current Accounts payable and accrued liabilities $ 310 $ - $ 310 Related party loan 2,000 - 2,000 Convertible debt, current portion 396 - 396 Operating lease liability 72 - 72 Total current liabilities 2,778 - 2,778 Non-current Convertible debt, net of current 6,599 563 7,162 Operating lease liability 86 - 86 Total liabilities 9,463 563 10,026 Commitments and contingencies SHAREHOLDERS' EQUITY Common stock, no unlimited 259,118,369 115,896 - 115,896 Accumulated deficit (101,036 ) (562 ) (101,598 ) Accumulated other comprehensive loss (1,034 ) (1 ) (1,035 ) Total shareholders' equity 13,826 (563 ) 13,263 Total liabilities and equity $ 23,289 $ - $ 23,289 Schedule of Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) For the Three Months Ended September 30, 2021 For the three months ended September 30, 2021 As Previously Reported Restatement Impacts Restated Operating expenses Employee related costs $ 319 $ - $ 319 Professional fees 90 - 90 Exploration expenditures 621 - 621 Other operating expenses 226 - 226 Total operating expenses 1,256 - 1,256 Foreign exchange loss 210 15 225 Interest expense 492 113 605 Other loss on equity securities 2 - 2 Loss before income taxes 1,960 128 2,088 Income tax benefit - - - Net loss $ 1,960 $ 128 $ 2,088 Other comprehensive loss: Net loss $ 1,960 $ 128 $ 2,088 Other comprehensive loss: Reporting currency translation (109 ) (15 ) (124 ) Total comprehensive loss $ 1,851 $ 113 $ 1,964 Loss per common share, basic and diluted $ 0.01 $ - $ 0.01 Weighted average common shares outstanding 258,023,048 - 258,023,048 (expressed in thousands of U.S. dollars, except share and per share data) Schedule of Condensed Consolidated of Cash Flows (unaudited) Condensed Consolidated Statement of Cash Flows (unaudited) For the Three Months Ended September 30, 2021 As Previously Reported Restatement Impacts Restated CASH FLOWS FROM OPERATING ACTIVITIES Total loss for the period $ (1,960 ) $ (128 ) $ (2,088 ) Non-cash elements included in net loss: Unrealized loss (gain) on equity securities 2 - 2 Accretion of convertible debt 438 113 551 Noncash lease expense (1 ) - (1 ) Depreciation 1 - 1 Foreign exchange loss (gain) 273 15 288 (1,247 ) - (1,247 ) Change in working capital items: Prepaid expenses (270 ) - (270 ) Accounts payable and accrued liabilities (92 ) - (92 ) Net cash used in operating activities (1,609 ) - (1,609 ) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of land and buildings (16 ) - (16 ) Net cash used in financing activities (16 ) - (16 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of capital stock 664 - 664 Related party debt repayments (318 ) - (318 ) Net cash provided by financing activities 346 - 346 Exchange rate effect on cash and cash equivalents (170 ) - (170 ) Change in cash and cash equivalents during period (1,449 ) - (1,449 ) Cash and cash equivalents, beginning of period 7,317 - 7,317 Cash and cash equivalent, end of period $ 5,868 $ - $ 5,868 Schedule of Condensed Consolidated Statement of Shareholder’s Equity Condensed Consolidated Statement of Shareholders' Equity (unaudited) For the three months ended September 30, 2021 Common Shares Outstanding Common Stock Deficit Accumulated Other Comprehensive Loss Total As Previously Reported Balance, June 30, 2021 256,379,931 $ 113,882 $ (99,076 ) $ (1,143 ) $ 13,663 Exercise of warrants 871,750 543 - - 543 Exercise of options 282,702 121 - - 121 Debt conversions 1,583,986 1,350 - - 1,350 Reporting currency presentation - - - 109 109 Loss for the period - - (1,960 ) - (1,960 ) Balance, September 30, 2021 259,118,369 $ 115,896 $ (101,036 ) $ (1,034 ) $ 13,826 Restatement Impacts Balance, June 30, 2021 - $ - $ (434 ) $ (16 ) $ (450 ) Reporting currency presentation - - - 15 15 Loss for the period - - (128 ) - (128 ) Balance, September 30, 2021 - $ - $ (562 ) $ (1 ) $ (563 ) Restated Balance, June 30, 2021 256,379,931 $ 113,882 $ (99,510 ) $ (1,159 ) $ 13,213 Exercise of warrants 871,750 543 - - 543 Exercise of options 282,702 121 - - 121 Debt conversions 1,583,986 1,350 - - 1,350 Reporting currency presentation - - - 124 124 Loss for the period - - (2,088 ) - (2,088 ) Balance, September 30, 2021 259,118,369 $ 115,896 $ (101,598 ) $ (1,035 ) $ 13,263 (expressed in thousands of U.S. dollars, except share and per share data) Schedule of Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet (unaudited) As of December 31, 2021 As Previously Reported Restatement Impacts Restated ASSETS Current Cash $ 4,866 $ - $ 4,866 Prepaid expenses and other 279 - 279 Total current assets 5,145 - 5,145 Non-current Deposits 35 - 35 Investment in equity securities 11 - 11 Right-of-use assets 126 - 126 Land and buildings, net 852 - 852 Mineral properties 16,085 - 16,085 Total assets $ 22,254 $ - $ 22,254 LIABILITIES Current Accounts payable and accrued liabilities $ 458 $ - $ 458 Related party loan 2,000 - 2,000 Convertible debt, current portion - - - Operating lease liability 76 - 76 Total current liabilities 2,534 - 2,534 Non-current Convertible debt, net of current 4,262 1,096 5,358 Operating lease liability 66 - 66 Total liabilities 6,862 1,096 7,958 Commitments and contingencies SHAREHOLDERS' EQUITY Common stock, no unlimited 264,026,990 120,935 - 120,935 Accumulated deficit (104,494 ) (1,096 ) (105,590 ) Accumulated other comprehensive loss (1,049 ) - (1,049 ) Total shareholders' equity 15,392 (1,096 ) 14,296 Total liabilities and equity $ 22,254 $ - $ 22,254 Schedule of Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) For the three months ended December 31, 2021 As Previously Reported Restatement Impacts Restated Operating expenses Employee related costs $ 1,232 $ - $ 1,232 Professional fees 424 - 424 Exploration expenditures 491 - 491 Other operating expenses 881 - 881 Total operating expenses 3,028 - 3,028 Foreign exchange gain (61 ) - (61 ) Interest expense 488 534 1,022 Other loss (gain) on equity securities 3 - 3 Loss before income taxes 3,458 534 3,992 Income tax benefit - - - Net loss $ 3,458 $ 534 $ 3,992 Other comprehensive loss: Net loss $ 3,458 $ 534 $ 3,992 Other comprehensive loss: Reporting currency translation 15 (1 ) 14 Total comprehensive loss $ 3,473 $ 533 $ 4,006 Loss per common share, basic and diluted $ 0.01 $ - $ 0.01 Weighted average common shares outstanding 261,392,248 - 261,392,248 Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) For the six months ended December 31, 2021 As Previously Reported Restatement Impacts Restated Operating expenses Employee related costs $ 1,551 $ - $ 1,551 Professional fees 514 - 514 Exploration expenditures 1,112 - 1,112 Other operating expenses 1,107 - 1,107 Total operating expenses 4,284 - 4,284 Foreign exchange loss 149 15 164 Interest expense 980 647 1,627 Other loss on equity securities 5 - 5 Loss before income taxes 5,418 662 6,080 Income tax benefit - - - Net loss $ 5,418 $ 662 $ 6,080 Other comprehensive loss: Net loss $ 5,418 $ 662 $ 6,080 Other comprehensive loss: Reporting currency translation (94 ) (16 ) (110 ) Total comprehensive loss $ 5,324 $ 646 $ 5,970 Loss per common share, basic and diluted $ 0.02 $ - $ 0.02 Weighted average common shares outstanding 259,734,327 - 259,734,327 Schedule of Condensed Consolidated of Cash Flows (unaudited) Condensed Consolidated Statement of Cash Flows (unaudited) For the six months ended December 31, 2021 As Previously Reported Restatement Impacts Restated CASH FLOWS FROM OPERATING ACTIVITIES Total loss for the period $ (5,418 ) $ (662 ) $ (6,080 ) Non-cash elements included in net loss: Unrealized loss (gain) on equity securities 5 - 5 Accretion of convertible debt 877 647 1,524 Noncash lease expense (3 ) - (3 ) Depreciation 1 - 1 Share based compensation 1,568 - 1,568 Foreign exchange loss (gain) 210 15 225 (2,760 ) - (2,760 ) Change in working capital items: Prepaid expenses (255 ) - (255 ) Accounts payable and accrued liabilities 57 - 57 Net cash used in operating activities (2,958 ) - (2,958 ) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of land and buildings (16 ) - (16 ) Net cash used in financing activities (16 ) - (16 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of capital stock 963 - 963 Related party debt repayments (318 ) - (318 ) Net cash provided by financing activities 645 - 645 Exchange rate effect on cash and cash equivalents (122 ) - (122 ) Change in cash and cash equivalents during period (2,451 ) - (2,451 ) Cash and cash equivalents, beginning of period 7,317 - 7,317 Cash and cash equivalent, end of period $ 4,866 $ - $ 4,866 (expressed in thousands of U.S. dollars, except share and per share data) Schedule of Condensed Consolidated Statement of Shareholder’s Equity Condensed Consolidated Statement of Shareholders’ Equity (unaudited) For the three months ended December 31, 2021 Common Shares Outstanding Common Stock Deficit Accumulated Other Comprehensive Loss Total As Previously Reported Balance, September 30, 2021 259,118,369 $ 115,896 $ (101,036 ) $ (1,034 ) $ 13,826 Exercise of options 736,914 299 - - 299 Debt conversions 4,171,707 3,172 - - 3,172 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - (15 ) (15 ) Loss for the period - - (3,458 ) - (3,458 ) Balance, December 31, 2021 264,026,990 $ 120,935 $ (104,494 ) $ (1,049 ) $ 15,392 Restatement Impacts Balance, September 30, 2021 - $ - $ (562 ) $ (1 ) $ (563 ) Reporting currency presentation - - - 1 1 Loss for the period - - (534 ) - (534 ) Balance, December 31, 2021 - $ - $ (1,096 ) $ - $ (1,096 ) Restated Balance, September 30, 2021 259,118,369 $ 115,896 $ (101,598 ) $ (1,035 ) $ 13,263 Exercise of options 736,914 299 - - 299 Debt conversions 4,171,707 3,172 - - 3,172 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - (14 ) (14 ) Loss for the period - - (3,992 ) - (3,992 ) Balance, December 31, 2021 264,026,990 $ 120,935 $ (105,590 ) $ (1,049 ) $ 14,296 Condensed Consolidated Statement of Shareholders’ Equity (unaudited) For the six months ended December 31, 2021 Common Shares Outstanding Common Stock Deficit Accumulated Other Comprehensive Loss Total As Previously Reported Balance June 30, 2021 256,379,931 $ 113,882 $ (99,076 ) $ (1,143 ) $ 13,663 Exercise of warrants 871,750 543 - - 543 Exercise of options 1,019,616 420 - - 420 Debt conversions 5,755,693 4,522 - - 4,522 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - 94 94 Loss for the period - - (5,418 ) - (5,418 ) Balance, December 31, 2021 264,026,990 $ 120,935 $ (104,494 ) $ (1,049 ) $ 15,392 Restatement Impacts Balance June 30, 2021 - $ - $ (434 ) $ (16 ) $ (450 ) Reporting currency presentation - - - 16 16 Loss for the period - - (662 ) - (662 ) Balance, December 31, 2021 - $ - $ (1,096 ) $ - $ (1,096 ) Restated Balance June 30, 2021 256,379,931 $ 113,882 $ (99,510 ) $ (1,159 ) $ 13,213 Exercise of warrants 871,750 543 - - 543 Exercise of options 1,019,616 420 - - 420 Debt conversions 5,755,693 4,522 - - 4,522 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - 110 110 Loss for the period - - (6,080 ) - (6,080 ) Balance, December 31, 2021 264,026,990 $ 120,935 $ (105,590 ) $ (1,049 ) $ 14,296 (expressed in thousands of U.S. dollars, except share and per share data) Schedule of Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet (unaudited) As of March 31, 2022 As Previously Reported Restatement Impacts Restated ASSETS Current Cash $ 3,464 $ - $ 3,464 Prepaid expenses and other 541 - 541 Total current assets 4,005 - 4,005 Non-current Deposits 35 - 35 Investment in equity securities 10 - 10 Right-of-use assets 110 - 110 Land and buildings, net 851 - 851 Mineral properties 16,085 - 16,085 Total assets $ 21,096 $ - $ 21,096 LIABILITIES Current Accounts payable and accrued liabilities $ 720 $ - $ 720 Related party loan 2,000 - 2,000 Convertible debt, current portion 2,585 1,300 3,885 Operating lease liability 79 - 79 Total current liabilities 5,384 1,300 6,684 Non-current Convertible debt, net of current - - - Operating lease liability 44 - 44 Total liabilities 5,428 1,300 6,728 Commitments and contingencies SHAREHOLDERS’ EQUITY Common stock, no unlimited 268,083,716 123,045 - 123,045 Accumulated deficit (106,310 ) (1,280 ) (107,590 ) Accumulated other comprehensive loss (1,067 ) (20 ) (1,087 ) Total shareholders’ equity 15,668 (1,300 ) 14,368 Total liabilities and equity $ 21,096 $ - $ 21,096 Schedule of Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) For the three months ended March 31, 2022 As Previously Reported Restatement Impacts Restated Operating expenses Employee related costs $ 308 $ - $ 308 Professional fees 16 - 16 Exploration expenditures 845 - 845 Other operating expenses 217 - 217 Total operating expenses 1,386 - 1,386 Foreign exchange gain (48 ) (18 ) (66 ) Interest expense 477 202 679 Other loss on equity securities 1 - 1 Loss before income taxes 1,816 184 2,000 Income tax benefit - - - Net loss $ 1,816 $ 184 $ 2,000 Other comprehensive loss: Net loss $ 1,816 $ 184 $ 2,000 Other comprehensive loss: Reporting currency translation 18 20 38 Total comprehensive loss $ 1,834 $ 204 $ 2,038 Loss per common share, basic and diluted $ 0.01 $ - $ 0.01 Weighted average common shares outstanding 265,764,404 - 265,764,404 Condensed Consolidated Statement of Operations and Comprehensive Loss (unaudited) For the nine months ended March 31, 2022 As Previously Reported Restatement Impacts Restated Operating expenses Employee related costs $ 1,859 $ - $ 1,859 Professional fees 530 - 530 Exploration expenditures 1,957 - 1,957 Other operating expenses 1,324 - 1,324 Total operating expenses 5,670 - 5,670 Foreign exchange loss 101 (3 ) 98 Interest expense 1,457 849 2,306 Other loss on equity securities 6 - 6 Loss before income taxes 7,234 846 8,080 Income tax benefit - - - Net loss $ 7,234 $ 846 $ 8,080 Other comprehensive loss: Net loss $ 7,234 $ 846 $ 8,080 Other comprehensive loss: Reporting currency translation (76 ) 4 (72 ) Total comprehensive loss $ 7,158 $ 850 $ 8,008 Loss per common share, basic and diluted $ 0.03 $ - $ 0.03 Weighted average common shares outstanding 261,729,813 - 261,729,813 Schedule of Condensed Consolidated of Cash Flows (unaudited) Condensed Consolidated Statement of Cash Flows (unaudited) For the nine months ended March 31, 2022 As Previously Reported Restatement Impacts Restated CASH FLOWS FROM OPERATING ACTIVITIES Total loss for the period $ (7,234 ) $ (846 ) $ (8,080 ) Non-cash elements included in net loss: Unrealized loss (gain) on equity securities 6 - 6 Accretion of convertible debt 1,300 849 2,149 Noncash lease expense (5 ) - (5 ) Depreciation 2 - 2 Share based compensation 1,568 - 1,568 Foreign exchange loss (gain) 151 (3 ) 148 (4,212 ) - (4,212 ) Change in working capital items: Prepaid expenses (516 ) - (516 ) Accounts payable and accrued liabilities 314 - 314 Net cash used in operating activities (4,414 ) - (4,414 ) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of land and buildings (16 ) - (16 ) Net cash used in financing activities (16 ) - (16 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of capital stock 973 - 973 Related party debt repayments (318 ) - (318 ) Net cash provided by financing activities 655 - 655 Exchange rate effect on cash and cash equivalents (78 ) - (78 ) Change in cash and cash equivalents during period (3,853 ) - (3,853 ) Cash and cash equivalents, beginning of period 7,317 - 7,317 Cash and cash equivalent, end of period $ 3,464 $ - $ 3,464 Schedule of Condensed Consolidated Statement of Shareholder’s Equity Condensed Consolidated Statement of Shareholders’ Equity (unaudited) For the three months ended March 31, 2022 Common Shares Outstanding Common Stock Deficit Accumulated Other Comprehensive Loss Total As Previously Reported Balance, December 31, 2021 264,026,990 $ 120,935 $ (104,494 ) $ (1,049 ) $ 15,392 Exercise of warrants - - - - - Exercise of options 906,917 10 - - 10 Debt conversions 3,149,809 2,100 - - 2,100 Share based compensation - - - - - Reporting currency presentation - - - (18 ) (18 ) Loss for the period - - (1,816 ) - (1,816 ) Balance, March 31, 2022 268,083,716 $ 123,045 $ (106,310 ) $ (1,067 ) $ 15,668 Restatement Impacts Balance, December 31, 2021 - $ - $ (1,096 ) $ - $ (1,096 ) Reporting currency presentation - - - (20 ) (20 ) Loss for the period - - (184 ) - (184 ) Balance, March 31, 2022 - $ - $ (1,280 ) $ (20 ) $ (1,300 ) Restated Balance, December 31, 2021 264,026,990 $ 120,935 $ (105,590 ) $ (1,049 ) $ 14,296 Exercise of warrants - - - - - Exercise of options 906,917 10 - - 10 Debt conversions 3,149,809 2,100 - - 2,100 Share based compensation - - - - - Reporting currency presentation - - - (38 ) (38 ) Loss for the period - - (2,000 ) - (2,000 ) Balance, March 31, 2022 268,083,716 $ 123,045 $ (107,590 ) $ (1,087 ) $ 14,368 Condensed Consolidated Statement of Shareholders’ Equity (unaudited) For the nine months ended March 31, 2022 Common Shares Outstanding Common Stock Deficit Accumulated Other Comprehensive Loss Total As Previously Reported Balance June 30, 2021 256,379,931 $ 113,882 $ (99,076 ) $ (1,143 ) $ 13,663 Exercise of warrants 871,750 543 - - 543 Exercise of options 1,926,533 430 - - 430 Debt conversions 8,905,502 6,622 - - 6,622 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - 76 76 Loss for the period - - (7,234 ) - (7,234 ) Balance, March 31, 2022 268,083,716 $ 123,045 $ (106,310 ) $ (1,067 ) $ 15,668 Restatement Impacts Balance June 30, 2021 - $ - $ (434 ) $ (16 ) $ (450 ) Reporting currency presentation - - - (4 ) (4 ) Loss for the period - - (846 ) - (846 ) Balance, March 31, 2022 - $ - $ (1,280 ) $ (20 ) $ (1,300 ) Restated Balance June 30, 2021 256,379,931 $ 113,882 $ (99,510 ) $ (1,159 ) $ 13,213 Exercise of warrants 871,750 543 - - 543 Exercise of options 1,926,533 430 - - 430 Debt conversions 8,905,502 6,622 - - 6,622 Share based compensation - 1,568 - - 1,568 Reporting currency presentation - - - 72 72 Loss for the period - - (8,080 ) - (8,080 ) Balance, March 31, 2022 268,083,716 $ 123,045 $ (107,590 ) $ (1,087 ) $ 14,368 |